Motorola, Sun Do Wireless Deal

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Motorola, Sun Do Wireless Deal

Motorola and Sun Microsystems announced plans on Wednesday to develop the backbone for a network that will allow wireless service providers to offer services like email and Internet access.

Under terms of the 10-year pact, Sun (SUNW) will provide the bulk of the software and Motorola (MOT) will supply most of the hardware and actually build the planned network.

The agreement calls for the development of a so-called open platform that will allow wireless service providers to quickly respond to demand for Internet-based voice, data, and video services.

The companies say they plan to sell the network equipment to traditional providers of wireless mobile phone services, but Motorola also sees a new market in companies that offer wireless Internet-based services.

The agreement joins the wireless communications operations of Motorola's Network Solutions Sector (NSS) with hardware equipment from Motorola's Computer Group (MCG) and software from Sun, the companies said.

Under terms of the agreement, Motorola plans to purchase up to US$1 billion in hardware from MCG, software and hardware from Sun, and custom hardware from Motorola NSS. The companies did not provide a breakdown of that figure.

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IBM makes thin client buy: IBM said Wednesday it has agreed to acquire Whistle Communications, a manufacturer of a new class of computers that supply Internet services to small businesses. Financial terms of the deal were not disclosed.

Whistle's "thin" servers allow small businesses to set up a complete set of Internet services for their employees, including Web access and email, through a single connection.

IBM said the acquisition of the privately held Foster City, California, company would "dramatically accelerate" its focus on meeting the demand for e-business products and services for small companies.

Officials said the deal is part of a broad push by Big Blue beyond its traditional focus on the world's largest companies, which still account for as much as 70 percent of IBM's revenues.

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Microsoft launches Win98 2.0: Windows 98 Second Edition, a modest upgrade to Microsoft main operating system for consumers, goes on sale Thursday, incorporating bug fixes and other updates to the software launched a year ago.

The upgrade of the leading personal computer software, available on disk for US$19.95 to licensed Windows 98 users, adds hardware updates, a new Web browser and other features, most of which already are available free over the Internet. The software will be available to users of Windows 95 and older versions of Windows for about $90 at retail stores, the same price as the original Windows 98.

The product also offers several features not available elsewhere, including Internet connection sharing, which allows two or more computers in a home to use a single Internet connection simultaneously.